Just a few months ago, the NASCAR world learned that Nationwide Insurance would not be returning as title sponsor of the industry’s second series after their contract expires at the end of the 2014 season. Instead the company plans on sponsoring more teams, like Roush Fenway Racing driver Ricky Stenhouse Jr., and be the title sponsor for race weekends.
NASCAR announced the monetary terms as it searches for a new title sponsor. According to the Sports Business Daily, NASCAR is raising its rates almost 20% to make the yearly sponsorship between $12-$15 million a season, up from the $10 million Nationwide Insurance pays currently.
In addition to the rights to the title series, NASCAR is also asking for a 10-year contract. Within that contract also lies a $10 million media commitment and a $10 million activation commitment…per season.
That brings the asking price up over $30 million a season for a new title sponsor.
According to the Sports Business Daily, the current Nationwide Series brings in roughly $130 million dollars a season. With new broadcast negotiations being announced this season as well, NASCAR races will be broadcast on three networks beginning in 2015: Fox Sports 1, NBC, and NBC Sports Network.
NASCAR hopes that brands such as Subway, Auto Zone and Dunkin’ Donuts will renew their interest in sponsoring the series as they did when it was last available in 2007.
With Nationwide Series viewership down this season, will that have an impact on finding a new title sponsor with raised rates? It’s a good thing NASCAR has a full year to negotiate because it might just take that long to come to an agreement.
Original Article posted here.